New Year brings new laws for expat businesses in Czech Republic

As it is every New Year in the Czech Republic, expats with businesses or working in the country will need to take note of a raft of new rules.

This new year, as usual, the set of new laws and regulations cover all businesses and workers in Prague and the wider republic, and include varied topics including a minimum wage boost and new ways to call in sick. The first change will be of major interest to expats working inn Czech companies, as monthly wages are now set to 14,600 CZK and hourly rates at 87.3 CZH. Guaranteed wages based on professional qualifications now range between 14,600CZK to 29,200. According to the government, a wage covering basic needs, small savings and free-time activities should be 31,463 CZK.

Electronic sick notes are now the only legal way for expats and Czech nationals to inform your employer you’re staying in bed, replacing paper notes and allowing employers to access details directly. However, it’s now compulsory to either call or email and let the boss known you’ll not be coming in. From now, a push to make all communications with government officials more electronic should come into force during this year. Those owning Airbnb properties will have to pay a residence fee, with the new rule taking in short-term rental houses and apartments.

Companies have been stating ownership for two years, but a penalty will now be charged for businesses not declaring an ultimate beneficial owner. Also required to be part of public record will be the country of residence of the owner. For expats who rely on their mobile phone service for just about every aspect of life, a new rule will make it far easier to change network operator suppliers.

Early contractual cancellation will now be just 5 per cent of total payments remaining, and fixed term contracts can be cancelled without penalty after the first three months. By the end of May this year, all cash payments by expats and residents to craftsmen or other individuals working as freelancers must be recorded, with the rule now including service providers, attorneys and even medical professionals.